Gold prices fall from lofty heights
One has to wonder if all of the hype from gold buyers and sellers was just another Ponzi scheme, or another housing bubble in the making.
One has to recall all of the radio, television and newspaper advertisements telling one where one could sell unwanted and unneeded gold at “guaranteed highest prices.”
There were the “Gold Guys” (one had an Australian accent) who were at the Mall of America and expanded into Maple Grove. Then came a push from smaller regional buyers of gold.
However, these guys were over-matched by the prime-time advertisers wanting to sell gold to anyone uncertain about the future in uncertain times.
Gold prices hit an all-time high of $1,928, according to CNNMoney.com. As of 3:42 p.m. Tuesday, April 24 gold was at $1,642.10 a troy ounce (electronic trading) for June 2012 contracts. So, it seems as though gold buyers who got in at $1,928 are sitting on some expensive assets.
Will gold keep dropping? One would have to speculate on what happens in hot spots around the world that usually tip commodities of all kinds into out of this world pricing. For example, gold has, until recently, been following oil prices.
If the Middle East erupts in war between Israel and its many enemies, it might be good to have some gold stowed away — at any price.